Note ban effect wearing off, says RBI's staff paper

A research paper named, Macroeconomic Impact of Demonetisation, prepared by the staff of Reserve Bank of India (RBI) has reinforced the observation that the demonetisation effect on the real economy is wearing off gradually.

The paper analysed the effect of demonetisation on a wide array of segments of the economy and concluded  that it is wearing off post the November-December time frame.

The study quoting the data of Central Statistics Office, said that real estate and construction were the two most affected sectors. While, a strong growth in agriculture, manufacturing and mining saved the gross value added growth from stooping too low.

Whereas in the financial sector, the banks gained but other financial instruments like NBFCs and MFIs were adversely affected.

As a disclaimer the authors - staff of Monetary Policy Department of RBI stated that the views expressed in the paper were not necessarily the official view of RBI as an organisation. 

 However, RBI's monetary policy document and the RBI governor, Urjit Patel have expressed similar views in their interaction with the masses.